Additionally, you’ve decided to expand your client list by offering credit terms. You’ve learned the importance of properly accounting for your receivables by using the Accounts Receivable subsidiary ledgers.
Before taking on new clients, you need to create an A/R subsidiary ledger account for your existing credit client: Speedy Freight. The terms originally offered were net 30. Speedy Freight’s address is 123 Elm Street, Mytown, YS 10011. To keep things simple, their existing balance as of January 1 is already entered.
The Accounts Receivable Subsidiary Ledger
Targeted marketing to some local companies yields some new clients. After a careful check of their ability to pay and payment history with vendors, the following clients are now seeking your services:
*Pinpoint Marketing, 900 E 1st Street, Mytown, YS 10011. Terms: n/30
*Able Landscape & Design, 367 Dogwood Ave, Mytown, YS 10011. Terms: n/30
*Smith & Jones Builders, 7399 Commerce St, Mytown, YS 10011. Terms n/30
Record the following transactions for January:
January 10: Sell a new desktop computer to Able Landscape for $2,200 plus 7% sales tax on account issuing sales slip 103.
January 14: Sell network system to Speedy Freight for $3,000 plus 7% sales tax on sales slip 104
January 20: Sell a new server and monitor to Pinpoint Marketing for $2,000 plus 7% sales tax on account issuing sales slip 105.
January 21: Sell Pinpoint Marketing software for resale for $1,500, no sales tax is charged, on sales slip 106.
January 23: Speedy Freight returns the monitor as it does not work and is defective. Issue credit memo 101 for $600.
January 30: Smith and Jones Builders request some networking help. Perform services for $1,500 on account on invoice 1246.
Proper journalizing and posting:
Make sure to record each transaction the appropriate journal and make any necessary posts to the subsidiary ledger daily. At the end of the month, properly total the sales and purchases journal columns and post to the general ledger. (Remember: any entries to the general journal are post immediately).
Create schedules for Accounts Receivable:
Create a schedule of accounts receivable and a schedule of accounts payable. Confirm that the total in each schedule matches the balance in your general ledger accounts.
I HAVE ATTACHED THE TEMPLATE FOR YOU THANKS